BTST/STBT Trading Tips for Today: 6th October, 2021

BTST Trading Tips for Today: 6th October, 2021
by 5paisa Research Team 06/10/2021

5paisa analysts bring the best intraday ideas, short-term ideas and long-term ideas for you. In the morning we provide best momentum stocks to buy today, while in the last trading hour we provide Buy Today Sell Tomorrow (BTST) and Sell Today Buy Tomorrow (STBT) ideas.

STBT Trading Ideas for Today

1. STBT : APOLLOHOSP OCT FUT

- Current Market Price: Rs. 4,405

- Stop Loss: Rs. 4,450

- Target 1: Rs. 4,350

- Target 2 : Rs. 4,290
 

2. STBT : HINDALCO OCT FUT

- Current Market Price: Rs. 477

- Stop Loss: Rs. 481

- Target 1: Rs. 467


3. STBT : INDIAMART OCT FUT

- Current Market Price: Rs. 8,246

- Stop Loss: Rs. 8,287

- Target 1: Rs. 8,150
 

4. STBT : MUTHOOTFIN OCT FUT

- Current Market Price: Rs. 1,505

- Stop Loss: Rs. 1,518

- Target 1: Rs. 1,476
 

5. STBT : HEROMOTOCO OCT FUT

- Current Market Price: Rs. 2,811

- Stop Loss: Rs. 2,830

- Target 1: Rs. 2,784

- Target 2: Rs. 2,770

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Moody’s ups outlook for banks, companies but retains negative view on this PSU

by 5paisa Research Team 06/10/2021

In some welcome news for India Inc, global ratings firm Moody’s has upped the rating outlook for nine Indian banks and nearly two dozen companies from “negative” to “stable”.

The banks that have been given an upgrade are Axis Bank, Bank of Baroda, Canara Bank, HDFC Bank, ICICI Bank, Punjab National Bank, Export-Import Bank of India, State Bank of India (SBI) and Union Bank of India.

Apart from banks, Moody’s also changed its outlook to stable for several non-bank lenders. These include Housing and Urban Development Corp, Indian Railway Finance Corporation, Indian Renewable Energy Developement Agency Ltd, Power Finance Corporation, REC Ltd and Hero FinCorp Ltd.

Other companies whose outlook has been changed include Tata Consultancy Services, Infosys Ltd, Reliance Industries Ltd, ONGC Ltd, Petronet LNG Ltd, Ultratech Cement, Oil India Ltd, Indian Oil and Hindustan Petroleum Corp Ltd.

Apart from these, at least 10 infrastructure majors have also seen an upgrade in their outlook. These include NTPC Ltd, National Highways Authority of India, Power Grid Corp of India Ltd, Gail (India) Ltd, Azure Power and several Adani group companies including Adani Green Energy, Adani Transmission, Adani Ports and Special Economic Zones, Adani Electricity Mumbai and Adani International Container Terminal. 

What prompted Moody’s to take such a step?

The upgrade follows the agency upping the country’s sovereign credit rating outlook on Tuesday from “negative” to “stable”. 

“The decision to change the outlook to stable reflects Moody's view that the downside risks from negative feedback between the real economy and financial system are receding,” the ratings firm said. 

Simply put, Moody’s thinks that an economic recovery is on the cards, and that India could be coming out of the shackles of successive lockdowns that had seen the country register its worst macroeconomic numbers and a full-blown recession for the first time in four decades. 

Has Moody’s changed India's actual rating?

No, it hasn’t. It has kept India’s sovereign rating at Baa3. This is the lowest investment grade and is just one notch above junk.

While Moody’s hasn’t changed the rating itself, the fact that it revised the outlook to stable means the risk of India’s rating falling to junk has receded. The government, meanwhile, has been pushing rating firms to upgrade India’s sovereign rating.

Are there any companies whose outlook remains negative?

Yes, there is at least one. Moody’s says its outlook on state-run Bharat Petroleum Corporation Ltd remains negative. This decision reflects “the uncertainty around its ownership, capital structure, liquidity and management control given the ongoing process by the government to divest its entire stake in the company”.

The government has selected the state-run refiner for privatisation and aims to sell the company to a private-sector buyer in the current financial year. The sale, in fact, could lead to a downgrade in BPCL’s rating.

“Given the negative outlook, a rating upgrade is unlikely. A change in outlook to stable will require the conclusion of the sale of government stake in the company such that the support incorporated in BPCL's rating is maintained,” Moody’s said.

“On the other hand, the rating will be downgraded if the government sells its entire stake resulting in elimination of the support incorporated in the rating. A sale of government’s entire stake in BPCL to a buyer with weak credit quality or significant credit negative changes to BPCL's post-acquisition capital structure or financial profile could also put downward pressure on the rating,” Moody’s added.

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Multibagger alert: Rs 1 lakh invested in this chemical stock would have given you Rs 24 lakh in five years.

Multibagger alert: Rs 1 lakh invested in this chemical stock would have given you Rs 24 lakh in five years.
by 5paisa Research Team 06/10/2021

Long-term investors have made a huge profit by investing in Deepak Nitrate as it has surged by 2,304% in the last five years.

The stock of multibagger Deepak Nitrate rallied from Rs 808 to Rs 2,886 and gained 192% since the beginning of this year. The stock has risen 260% in the past year.

Long-term investors have made a huge profit by investing in this chemical stock as it has surged 2,304% in the last five years which is 24x times the invested amount. Rs 1 lakh invested in 2016 would have become Rs 24 lakh in 2021.

Deepak Nitrite is one of the leading suppliers of chemical intermediates. It has a diversified portfolio of the intermediate, which is used in dyes and pigments, agrochemical, petrochemical, pharmaceutical, plastics, textiles, paper and home and personal care segments in India and overseas.

In the last five years from FY16 to FY21, revenue has grown at a CAGR of 20% and profit has grown at a CAGR of 55% which shows the steep growth of the company.

There is a tremendous increase in operating profit margin from 10% in FY16 to 27% in FY21, due to proper backward integration and forward integration. In doing so, they saved a lot of cost from raw materials which is used for manufacturing.

Global companies are trying to reduce dependency on China since various factories in that country can’t operate due to power shortages. This is a positive macroeconomic factor for chemical companies operating in India.

Deepak Nitrate has a market leadership across product segments, they are the leading producer of sodium nitrite in the world and one of the top three global players in fine and speciality chemicals.

The company has strong management with Deepak Mehta, the chairman of the company who has 40 years of industry experience and his son Maulik Mehta as the CEO, who has 10 years of industry experience and exceptional academic background.

Though stock had a massive rally in the past, do you still think the company can utilize the present situation and gain momentum?.

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Chart Busters: Top trading set-ups to watch out for Thursday.

Chart Busters: Top trading set-ups to watch out for Thursday.
by 5paisa Research Team 07/10/2021

The Nifty index has formed a bearish engulfing candlestick pattern on the daily chart. The index has lost nearly 240 points from the days high. The broader market has also witnessed a downward move. The advance-decline ratio was in the favour of decliners. Despite this selective stocks have seen buying interest by market participants.

Here are the top trading set-ups to watch out for Thursday. 

Bosch: Since the last 96 weeks, the stock was oscillating in a broader range of Rs 17260-Rs 7850, which resulted in the formation of a symmetrical triangle pattern on the weekly chart. On Wednesday, the stock has given a breakout of a symmetrical triangle pattern. Further, this breakout was supported by a robust volume of more than 11 times of 50-days average volume, indicating strong buying interest by market participants. The 50-days average volume was 56232 while today the stock has registered a total volume of 645475. Currently, the stock is trading above its short and long-term moving averages. The stock's Relative Strength Index (RSI) has reached its highest value in the last 14-weeks, which is bullish. Also, it has managed to close above its prior swing high after almost 16 weeks. The stock is in uptrend and trend strength is extremely high. The Average Directional Index (ADX), which shows trend strength, is as high as 48.91 on a daily chart and 27.57 on a weekly chart. Generally above 25 levels is considered as the strong trend. In both time frames, the stock is meeting the criteria. Hence, we would advise the traders to be with a bullish bias. Going ahead, as per the measure rule of the symmetrical triangle pattern, the first resistance for the stock is placed around Rs 19600, followed by Rs 22260. On the downside, supports are seen around Rs 15870-Rs 15500 levels as it is a confluence of 8-day EMA and today’s low.

Chembond Chemicals: Considering the weekly chart (on logarithmic scale), the stock is oscillating in the rising channel for the last 57 weeks. The stock has formed a strong base near the demand line of the rising channel. The demand line coincides with the 20-week EMA level. On Wednesday, the stock has given a 30-days consolidation breakout on the daily chart and it has marked a fresh all time high. The breakout was confirmed by robust volume. All the major indicators suggest a bullish momentum in the stock. Currently, the stock is displaying a bullish trend as it is trading above its short and long-term moving averages. The weekly RSI (66.38) is just above the bullish zone and surged above the prior swing high. The MACD is above the zero line and signal line on the daily chart. The daily MACD histogram suggests bullish momentum. Going ahead, the level of Rs 245 would act as an important support for the stock in the near-term as per the rule of change in polarity i.e. previous resistance once breached acts as a support level. On the upside, targets are open towards the levels of Rs 300. As long as the stock stays above the level of Rs 245 mark, be with a bullish bias.

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Here’s what you need to know before the market opens on October 07, 2021.

Here’s what you need to know before the market opens on October 07, 2021.
by 5paisa Research Team 07/10/2021

Opening Bell: Here’s what you need to know before the market opens on October 07, 2021.

SGX Nifty indicates that the Bulls will make a strong comeback on D-Street.

The fragile global cues were the main culprit which derailed the momentum of the D-Street, however, on Thursday global cues are in the favour of the bulls and as a result, the D-Street bulls seen jumping with joy and this is evident from the fact that SGX Nifty is up by 0.80% or 140 points, indicating Nifty may open around 17,769 levels.

Cues from Asian markets: Mirroring strong cues from Wall Street the Asian Stock markets were seen buzzing on Thursday with Nikkei 225 surging 1.53%, while Hong Kong’s Hang Seng jumped 2%.

Overnight cues from US markets: On Wall Street earlier in the day on Wednesday, the market participants were quite anxious and fear was dominant factor and this was evident as the Dow at point of time in the day had plummeted over 400 points, however, change in fortune was see on Wall Street after Senate Minority Leader Mitch McConnell has offered to allow a temporary extension of the debt limit. As a result, all the three major US Stocks indices ended the day in green with tech-heavy leading from the front as it added 0.5% followed by the S&P 500 and the Dow, which have gained 0.4% and 0.3%, respectively. We can conclude it by saying, ‘All’s well that ends well!’.    

Last session summary: On Wednesday, Indian benchmark indices snapped their two-days winning streak owing to weak global cues. The Nifty and Sensex slipped 0.99% and 0.93%, respectively. Nearly 80% of Nifty components ended in red. India VIX jumped over 5% and ended above the 17-mark.

Among the sectoral indices, all the indices witnessed selling pressure. Nifty Metal lost the most 2.98% followed by Nifty PSU Bank and Nifty Pharma.    

FII’s and DII’s activity on Wednesday: FIIs and DIIs both were net sellers to the tune of Rs 802.81 crore and 998.69 crore, respectively.

Important Corporate events to watch out for: Board Meeting of Gokaldas Exports is scheduled on October 67to consider fund raising.

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These stocks are locked in upper circuit as Sensex rallies over 500 points.

These stocks are locked in upper circuit as Sensex rallies over 500 points!
by 5paisa Research Team 07/10/2021

The benchmark indices have made a strong start in Thursday's trading session and are cheering up the market. BSE Sensex has jumped over 500 points and NSE's Nifty has zoomed beyond 150 points. Titan, M&M, Maruti Suzuki, HCL Technologies and Asian Paints are the top gainers within Sensex, whereas Axis Bank, HDFC Bank, Dr Reddy's Laboratories and HUL are the top losers.

In the broader markets, BSE Midcap and BSE Smallcap indices are seen outperforming the benchmark indices, gaining 1.44% and 1.38% respectively.
 

BSE Auto index, BSE Consumer Durables index and BSE Realty index are catching investors' attention gaining up to 4% on an intraday basis, while the BSE Oil and Gas, BSE FMCG and BSE Healthcare indices are the weakest performing sectoral indices. The realty stocks are in a buzz with Sobha, Oberoi Realty and Prestige Estates gaining 11.56%, 8.16% and 7.34%, respectively. Within the Consumer Durable index, Titan, Whirpool of India, Blue Star, Dixon Technologies and Vaibhav Global are the top gaining stocks.

We find that as many as 348 stocks have hit an upper circuit while 112 stocks are locked in the lower circuit.

On Tuesday, there are at least 286 stocks that hit 52 weeks high while as many as 10 stocks hit 52 weeks low.

The stocks of Raj Ratan Global Wire, Brightcom Group, JITF Infralogistics, Genesys International, etc have locked in upper circuit zooming up to 5%.

Following is the list of trending stocks that hit the upper circuit on Thursday, on an intraday basis:
 

Sr No  

Stocks  

LTP  

Price Gain (%)  

Raj Ratan Global Wire  

2311 

Brightcom Group 

74.25 

4.95 

JITF Infralogistics  

251.2 

4.99 

Genesys International  

264.8 

Imagica World Entertainment  

13.35 

4.71 

Paras Defence and Space Technology  

598.5 

California Software  

32.7 

4.98